The US Dollar finished the week overall lower, althought it was not the worst performer; it outperformed three majors while underperforming the other four.
For all the scaremongering over Cyprus, you would have expected the Euro to fall off of a cliff against the safe-haven US Dollar and British Pound. It didn’t. Why hasn’t the Euro fallen, and more importantly, can it continue to hold its ground given regional turmoil?
The Japanese Yen continued to consolidate against its U.S. counterpart, but the range—bound price action in the USDJPY may be short lived as Haruhiko Kuroda takes the helm of the Bank of Japan (BoJ).
The British Pound was a top performer this week, trailing only the resilient New Zealand Dollar and the quizzically strong Japanese Yen, while adding +0.76% against the US Dollar, and +1.42% against the Euro.
The Australian Dollar appears vulnerable as worrisome news-flow out of Cyprus threatens to spark market-wide risk aversion that engulfs the high-yielding currency.
The Canadian dollar finished slightly lower on Friday after trimming most of its earlier losses against the greenback following Thursday’s release of Canada’s 2013 Budget Report.
Gold took another leg higher this week with the precious metal advancing by 1% to close the week at $1608 in New York on Friday.
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